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Private equity firms picked up Covid-19 loan cash for portfolio companies, new US Treasury data shows

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Private equity firms with stakes in the US healthcare industry have managed to tap into federal bailout money designed to give small businesses a lifeline through the pandemic, a new data dump from the Paycheck Protection Program shows.

The PPP data shows buyout houses have benefited from the loans, designed to help SMEs by their affiliation with medical and dental practices, Bloomberg reports.

Abry Partners, Prospect Hill Growth Partners and Gauge Capital were identified as some of the firms that have used the medical companies in their portfolio to get loans from the government.

Bloomberg noted that the PPP data only shows that the money went to the medical firms and not how the money was spent afterwards.

The latest revelations comes just a couple of days after several PE and VC firms listed as beneficiaries of coronavirus-related small business bailouts denied receiving funding – or even applying for the programme.

Andreessen Horowitz, Index Ventures, Foundation Capital and Advent Capital Management were all listed as having taking PPP loans by the US Treasury to the tune of more than $520bn.

An Andreessen Horowitz spokeswoman, Margit Wennmachers, told Bloomberg that the firm didn’t apply for or receive any funds, and called its listing in the disclosures a “mystery”.
Advent, Index and Foundation Capital all said they did not apply for any PPP loans, the report added.

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